Snap Inc. snapped up the 156K SF lease at the building previously slated for 23andMe’s corporate headquarters in a rare full-building lease deal for Silicon Valley, CoStar reported.
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The deal for the Sunnyvale property at 221 N. Mathilda Ave., finalized last week, comes as the social media app Snapchat’s parent company expands its Bay Area footprint. The company also leases a space in Palo Alto.
The Sunnyvale deal revives the fortunes of a property that has struggled to secure a long-term tenant since construction wrapped in 2019.
The landlord, San Francisco-based Spear Street Capital, recently reacquired the building for $87M, $100M less than what Stockbridge Capital Partners paid for it in 2019.
Though 23andMe had preleased the entire project, the pandemic derailed plans to move in as employees worked from home, which drastically reduced the need for office space. The company never moved in, instead subleasing the space to cloud computing company CoreWeave Inc.
Following 23andMe’s March bankruptcy filing, CoreWeave requested a return of its $250K security deposit as 23andMe moved to abandon its lease and reject the sublease.
Snap’s investment in Sunnyvale follows Apple’s notable purchase of Mathilda Commons for $350M. Apple also expanded its portfolio by purchasing its Cupertino campus for $167M.
